Page 4 - FSUOGM Week 05 2023

FSUOGM COMMENTARY FSUOGM

Azerbaijan targets further growth

in gas exports in 2023

Azerbaijan remains committed to doubling gas shipments to Europe by 2027.

AZERBAIJAN AZERBAIJAN will boost natural gas exports to electricity from Azerbaijan, it was stated at the
24.5bn cubic metres in 2023, from 22.6 bcm last meeting. A transmission line would also be con-
WHAT: year, Azeri President Ilham Aliyev announced at structed between Azerbaijan and Georgia, help-
Azeri gas exports are due a ministerial meeting of the Southern Gas Corri- ing shore up the latter country’s energy security.
to rise again this year. dor Advisory Council on February 3. Aliyev noted that his government had signed
Imports also grew in 2022, from 19 bcm in memoranda of understanding (MoUs) with
WHY: 2021, the Azeri president said. He also reaffirmed three companies for the construction of wind
Output at the Shah Deniz Azerbaijan’s commitment to doubling gas flow to farms and solar power plants with a combined
field continues to ramp Europe by 2027, in line with an agreement with capacity of almost 25 GW. An agreement with
up. the European Commission. Europe received Fortescue covers 12 GW of capacity, while deals
11.4 bcm of gas from Azerbaijan last year, while with Masfar and ACWA cover capacities of 10
WHAT NEXT: the rest of the country’s exports were delivered to GW and 2.5 GW respectively.
Azerbaijan wants to Georgia and Turkey. The Black Sea transmission cable should be
expand its market share The EU has reached out to Azerbaijan and planned in stages and coordinated with demand
in Europe while also other pipeline gas suppliers to help replace lost levels in Europe,” the president said. “I am sure
offering the continent gas supply from Russia. Gazprom’s pipeline gas Romania and Hungary will not be the final des-
green electricity. exports to the bloc are currently only around tination for green energy,” he said.
a tenth of the level they were before Moscow Azerbaijan has some 157 GW of wind and 27
launched its invasion of Ukraine a year ago. GW of solar power potential in total, he said.
The Southern Gas Corridor (SGC) started Meanwhile, Serbian Energy Minister
delivering gas to the EU in 2020, helping South- Dubravka Dedovic said her country aimed to
east Europe reduce its reliance on Russian finish building a gas interconnector with Bul-
supply. Volumes are currently sold to Greece, garia by autumn, enabling it to access Azeri
Bulgaria and Italy, but Azerbaijan is looking to gas and LNG being imported in Greece. Serbia
extend deliveries to other markets in the region expects to start receiving gas deliveries via the
over the coming years, although doing so will new route in early 2024, she said.
require the development of new pipelines. Montenegro’s deputy prime minister, Ervin
Aliyev claimed that Azerbaijan’s natural gas Ibrahimovic, added that Albania, Montenegro
reserves were sufficient to cover domestic needs and Croatia had launched an initiative in 2007 to
and export volumes for at least another 100 build the Ionian Adriatic Pipeline, which would
years, adding that new fields would be brought serve as an extension of the SGC. The project has
into production this year. Deliveries to Romania languished for years as a result of lacklustre EU
will start very soon, he said. support, although the energy crisis in Europe
Preparations have also begun for laying could provide it with fresh impetus.
a power cable along the bottom of the Black The pipeline would link the Albanian city of
Sea that would allow Europe to tap renewable Fier with Split in Croatia via Montenegro. ™

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